Core Viewpoint - The IPO of Watsons Group, a subsidiary of CK Hutchison Holdings, is being planned with Goldman Sachs and UBS, considering dual listings in Hong Kong and London, reflecting the transformation strategies of traditional retail giants in the new era and the deep considerations of family capital [1][4]. Group 1: Company Background and Financial Performance - Watsons Group, historically linked to the Li Ka-shing family, has evolved from a pharmacy established in 1828 to a global retail giant, becoming a core asset of the CK Hutchison Group since its acquisition in 1979 [1][2]. - Despite having over 16,000 stores and 140 million members across 25 markets, Watsons has faced significant challenges, with recent financial reports indicating a need for capital to support digital transformation and operational improvements [2][3]. - The company has been a stable cash flow generator for the group, but its recent performance has necessitated a strategic shift to optimize family wealth and reduce financial burdens [4][5]. Group 2: Historical IPO Attempts - Watsons has attempted to go public three times, with the first attempt in 2014 during a period of rapid expansion, where it was valued between $25 billion and $30 billion, but the plan was shelved due to valuation discrepancies [6]. - The second attempt in 2020 was thwarted by the COVID-19 pandemic, highlighting the vulnerabilities of traditional retail models amid systemic risks [6][7]. - The current market environment presents even greater challenges, with the need for Watsons to adapt to a rapidly changing retail landscape characterized by e-commerce and shifting consumer preferences [7]. Group 3: Digital Transformation and Strategic Initiatives - Watsons is undergoing a comprehensive digital transformation, aiming to integrate online and offline retail through initiatives like the Watsons app and enhanced in-store experiences [9][11]. - The company is focusing on increasing the share of high-margin private label products and health-related items to improve profitability and differentiate itself from competitors [11]. - The transformation requires significant investment, making the IPO a crucial step to secure independent funding for ongoing digital initiatives and operational enhancements [11][12]. Group 4: Market Position and Future Outlook - The upcoming IPO is not just about raising capital but also about demonstrating Watsons' ability to evolve and thrive in a new competitive landscape, addressing the question of its valuation potential in a changing market [12].